YAZAKI: Past, present, future. We are connected.

In 1972, the Yazaki Group stood at the peak of its prosperity. That year, it completed the Hamana Factory, its largest manufacturing plant. Called the “Aircraft Carrier Enterprise” for its size, the factory’s construction cost the whopping sum of 12 billion yen. At the same time, logistics centers and branch offices were built in all parts of Japan to establish the Group’s sales and service system. When combined with that to establish this system, total investment reached an incredible 23 billion yen.

However, in December of 1973, the very next year, Japan was buffeted by the first oil crisis. Although the government executed a strict money-tightening policy in a bid to stem inflation, Japan’s economy quickly deteriorated. Riding the momentum from the previous year, Yazaki had recorded record figures in its settlement of accounts in June 1974, but now both sales and profits had begun falling precipitously from the beginning of the year. And then came what seemed to be the final, tragic blow. On August 27, just two months after the company’s settlement of accounts, Yazaki Corporation learned of the sudden passing of its founder, Sadami Yazaki. At this time of unexpected hardship, there arose among everyone in Yazaki—from management down to the rank-and-file—an indomitable fighting spirit and burning desire to overcome.

Under the leadership of the new president, Yasuhiko Yazaki, who was but 33 years old at the time, with the backing of its banks, the company’s management embarked on bold policies.

･ Ensure a corporate structure that will generate profits with 100 billion yen in sales.

･ Cut the workforce from 10,000 to 8,000.

･ Dispose of idle assets.

In actuality, Yazaki disposed of as much as 20 billion yen in assets from 1975 to 1978. It also took decisive action in curtailing expenditure by 500 million yen a month. Major assets that were sold included the company’s Head Office in Tamura-cho, Tokyo (now Nishi-Shimbashi, Minato Ward), which had served as the Yazaki Group’s nerve center for thirty years, as well as the just completed Hamana Factory and 36 branch offices.

Yazaki’s employees did their very best to endure. Their union was placed in a tough spot, having offered on its own to cut bonuses to zero and go without raises; however, its patience was a great help to the company as it tried to get back on its feet. In the end, Yazaki successfully reduced its workforce to 7,500 by restricting hiring and asking for voluntary retirement. It also received immeasurable support from its clients, banks, suppliers and subcontractors. It was desperate measures such as these by people inside and outside the company that gave Yazaki the means to move steadily toward reconstruction.